DeFi Risk Management Firm Gauntlet Joins Morpho Post Aave Exit
Quantitative research firm Gauntlet has joined Morpho, a trustless decentralized finance (DeFi) lending protocol, as a risk curator following its departure from Aave (AAVE) .
Gauntlet specializes in risk management and will collaborate with Morpho to design transparent and automated lending vaults for users, the company said in a press release shared with Cryptonews.com.
Morpho’s lending protocol, Morpho Blue, adopts a different approach by externalizing risk management from the protocol, which reportedly eliminates the trade-offs between growth and risk, creating a clear alignment between risk experts, users, and the protocol.
Morpho Blue is designed as an infrastructure rather than a product, allowing risk experts to build scalable products and services on top of a common base layer.
Gauntlet will curate lending vaults on Morpho using Metamorpho, an open-source protocol for permissionless risk curation built on top of Morpho Blue.
These lending vaults combine the best features of isolated markets and multi-asset lending pools, providing users with a simple and optimal way to earn yield on their assets.
Gauntlet brings its expertise in risk management, leveraging battle-tested techniques from the algorithmic trading industry, to curate various high-quality lending vaults.
The use of Metamorpho presents an opportunity for Gauntlet to stress test its capabilities and further enhance risk management strategies in DeFi.
“Working with a team of quants used to trading in milliseconds, we’ve always looked for faster paths to proactively manage risk and capture growth opportunities,” Nick Cannon, VP Growth at Gauntlet, said.
“MetaMorpho is our best opportunity yet to directly stress test our capabilities.”
Gaun
